Although there are many ways to trade digital assets, margin trading has grown to become one of the go-to strategies for traders who wish to take bigger risks and multiplying their profits. The potential for extreme risks, being able to consolidate their positions with borrowed capital, and equally getting extreme rewards is arguably one of the hallmarks of margin trading. The idea of being able to multiply an investment by 10x, 20x, or even 50x, makes margin trading a honeypot for experienced traders.
Interestingly, despite the demand for cryptocurrency exchanges offering margin trading services, only a handful of players within the space have this feature enabled on their platforms. In addition to a limited number of trading pairs, a significant percentage of exchanges that support margin trading often struggle with volume and liquidity issues.
According to Bitcoin.com, Bitmex, Deribit, and a few other established exchanges were the only platforms that supported margin trading prior to 2019. When compared with a market of over 300 exchanges, it becomes clear that this niche has not significantly increased over the last year. Only 15 to 30 cryptocurrency exchanges currently provide access to the derivatives market with an option to margin trade. A more shocking revelation is the fact that only 5 exchanges (including Bybit, Bitmex, FTX, Deribit, and Bitfinex) out of this figure provide a full-fledged margin terminal with advanced trading tools. This represents less than 2 percent of the overall cryptocurrency exchange market.
WhiteBIT’s Margin Trading Terminal
WhiteBIT, a top-100 exchange has expanded its product offering to include a margin trading terminal. Although the exchange operates globally, its primary focus is on the European and CIS markets. Its decision to enable margin trading makes it the first and only exchange with a remarkably competitive margin terminal in the CIS market.
Whilst the terminal will enable up to 25x leverage for traders who wish to consolidate their positions and multiply their capital, the platform will kick off with a 5x leverage option. Put differently, traders will be able to open margin trades and borrow up to 5 times their capital with the possibility of increasing their profits by fivefold.
As earlier stated, low liquidity is one of the issues plaguing many unpopular cryptocurrency exchanges. WhiteBIT has taken a number of proactive steps to ensure that traders perform optimally in a highly volatile space. The crypto-to-fiat exchange has plans to include a number of high-liquidity fiat pairs on its margin terminal. The likes of the Ukrainian Hryvnia (UAH), Russian Ruble (RUB), Euro (EUR), and Turkish Lira (TL) are expected to trade against top digital assets such as Bitcoin, Ethereum, Litecoin, and Ripple.
WhiteBIT already offers its services to over 180,000 users, of which approximately 20% are active traders. Data on Coingecko also reveal that the exchange is regularly hitting a 24-hour trading volume of over $500,000,000. In general, the exchange has shown strong performance in terms of trading volume and high liquidity.
From BitGrail to Coincheck, the cryptocurrency space is not new to hacks, security breaches, and exit scams. However, since its launch in 2018, WhiteBIT has remained transparent, free from security breaches, and has strived to rollout user-centric products.
In addition to implementing two-factor authentication and anti-phishing software, the platform claims to store 96% of its digital assets on cold wallets. In the event of a security breach, a substantial amount of users’ funds will still be protected.
Fees & Support
With a maximum fee of 0.1%, WhiteBIT currently has one of the most competitive fees in the cryptocurrency exchange space. Deposits and withdrawals can also be completed using Visa, MasterCard, Perfect Money, Advcash, Qiwi, and Yandex; thus, giving users a plethora of options to choose from.
The exchange has a solid record of processing withdrawal requests within minutes and a support center that is available 24/7. It is expected that the same level of agility will be transferred to its margin terminal.
WhiteBIT has evolved in the last few years, introducing a variety of user-oriented features. The project boasts of a team of over 100 specialists, 65 of which are blockchain experts and experienced developers. It, therefore, comes as no surprise that WhiteBIT has managed to stay relevant in the crypto exchange landscape.